The price of crude oil reaches six-month high


The price of crude oil reaches six-month high

Brent and WTI oil prices reached their highest levels since October 2023 due to concerns over the risk of a conflict between Israel and Iran. Closing on April 5, Brent crude oil rose to 91.17 USD per barrel, a 0.6% increase, while US crude oil also increased by 0.4% to 86.9 USD. These prices are the highest in six months, with both Brent and WTI increasing by over 4% this week. Iran announced its intention to retaliate against Israel after an Iranian general was killed in an attack in Syria, although Israel has not claimed responsibility.

Iran, the third-largest oil producer in OPEC, potentially attacking Israel has raised geopolitical risks. This, along with potential reductions in Russian oil refinery capacities due to attacks by Ukraine, has influenced oil prices. OPEC+ decided to maintain production policies and pressure member countries to comply with production reduction policies, which could further tighten oil supplies and reduce inventories in the coming quarter.

On the other hand, the US employment report for March showed a more vibrant labor market than expected, with 303,000 new jobs created. This increased oil demand but could delay the US Federal Reserve’s decision to reduce interest rates this year. Analysts forecast a global increase in oil demand in the second quarter and note a decrease in the number of drilling rigs in the US, indicating potential future changes in oil and gas output.

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